The growth of social media and its impact on fraud

Article

Ionela Emmett, Senior Manager, Financial Crime Controls, Risks and Policy & Advisory, ICBC Standard Bank

The growth of social media and its impact on fraud

During the pandemic and subsequent lockdowns, the number of users on social media soared, and they continue to be high as more people become dependent on online services. Whether for business or personal use, there is a social media app to cater to all requirements, requiring users to create an online profile. It has become more commonplace for people to be scammed out of money online as fraudsters can impersonate a victim’s bank, employer, or even law enforcement. As techniques and tactics continue to evolve, victims aren’t being naïve but are being taken advantage of. Therefore, how do they remain protected while online?How are people affected by the relationship between social media and fraud?In recent years, social media platforms have grown exponentially, with some new and others making interface changes; for example, Twitter rebranding to X. Developers see more people engaging with social media, so they continue to design new platforms to diversify audiences in a crowded space. As this growth continues, marketing companies and businesses are joining social media platforms to boost engagement and business revenues; this can be seen with the volume of adverts consumers are exposed to on social media platforms. Recently, social media giant Meta introduced Threads to compete against X, attracting 5 billion users in its first week, overtaking the sign-up to ChatGPT for the same period.Results from a 2023 study by Meltwater show that 64.6% of the world’s population are using the internet, with 59.9% on social media. These figures are not only up from previous years but show that more than a third of the population has an identity online where they could be at risk of harm. Often, people share their personal information without a second thought, including home address, place of work, family members’ names, birthdays, and other personal details. People forget this information isn’t just shared with friends and family but with strangers too. Despite privacy settings at

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